How Much Home Can You Afford?
There are a number of questions to answer when beginning the home-financing process. Although requirements for loans are more stringent than in years past, a little preparation will help you get through the process with ease.
Consider your current expenses and how easily you're handling them. If you have room in your budget to make a house payment and you have room for the maintenance costs and possible unexpected repairs that are inevitable on most homes, it may be the right time for you to buy.
Qualifying for a Loan
For you to qualify for a loan, a lender will consider your total monthly debt payments and mortgage payment. In most cases, this number should equal no more than 45% of your gross income.
To see how much you can afford, use these:
Homeownership – Expenses to Consider:
- Mortgage Payment
- Hazard Insurance (Homeowners Insurance)
- Private Mortgage Insurance
- Maintenance and Upkeep
- Repairs and Replacements
- All Other Monthly Obligations – installment and revolving debt
Considering all your payments and obligations, think about what you would be comfortable paying each month. Your Mortgage Consultant will be sure you have the information you need to make a responsible home financing decision by calculating the numbers and showing you the amount you may qualify to borrow.